GFCL EV Invests Rs 6,000 Crore in Indigenous EV Battery Supply Chain


2/9/20241 min read

GFCL EV Products, a wholly-owned subsidiary of Gujarat Fluorochemicals, has announced a substantial investment of Rs 6,000 crore to enhance the production capacity of electric vehicle (EV) battery materials over the next four to five years. This investment underscores the company's commitment to bolstering the indigenous EV battery supply chain. The move is strategically aimed at capitalizing on the global opportunity in the EV battery chain, which is anticipated to surge to $300 billion by 2030.

The company's objective is to establish an innovative ecosystem for electric mobility by delivering approximately 200 GWh/year of EV and energy storage system (ESS) battery solutions. The surge in demand is attributed to favorable government policies such as the IRA Act, China Plus One strategy, and the production-linked incentive (PLI) scheme, all of which have contributed to a significant uptick in demand.

Vivek Jain, chairman of INOXGFL Group, emphasized the pivotal role of this investment in shaping the future of the EV and ESS battery industry. He highlighted the company's dedication to driving innovation in the electric mobility sector and energy transition. Jain stated, "The significant investment in the EV/ESS battery chemicals supply chain underscores our dedication to driving innovation in the electric mobility sector and energy transition. As leaders, our objective extends beyond mere market prominence. We aspire to be pioneers in sculpting a cleaner and environmentally sustainable tomorrow. This resonates with our ethos of being a green group with expanding businesses in the renewables sector."

Of the total Rs 6,000 crore investment, Rs 650 crore had already been invested by December 2023. A portion of this investment is anticipated to be directed towards facilities in Dahej, located in South Gujarat.

In the domestic context, GFCL's venture into the EV segment assumes significance, given the projected growth rate of the industry at a compound annual growth rate (CAGR) of around 30% between 2022 and 2030, as highlighted by the company. This strategic move positions GFCL EV Products to capitalize on the burgeoning demand for EVs and contribute significantly to India's sustainable mobility ecosystem.